As with all quarterly earnings releases, investors are far more concerned with where a company is going than with where it's been. Qualcomm's
Investors winced at the impact of litigation costs and legal battles on Qualcomm this quarter. While revenue for the quarter came in at a healthy $2.3 billion, net income was affected significantly because of the absence of royalty income from Nokia
Future guidance for the next fiscal year included an approximate $0.25 to $0.30 earnings hit from the absence of Nokia royalties. This compounded with estimates that Qualcomm would again spend north of $200 million next year to defend its business to pressure the stock. While Qualcomm expects some of its direct legal costs to moderate, more spending is envisioned to keep downstream customers such as Verizon Wireless -- a joint venture between Verizon Communications
Outside of all the litigation threats, though, Qualcomm continues to be a top chipset supplier in the industry, named again this quarter as the world's top supplier of semiconductors for wireless applications. It continued to plow a good portion of cash into R&D -- spending 21% more than last year to support innovative new products.
While it's easy to dismiss my bias toward Qualcomm, I still contend that the story for the company is getting better, not worse. The gloom and doom surrounding Broadcom's
So, like Vonage
For more Foolishness:Dave Mock survived the college years of Top Ramen and beer and has graduated to boxed pasta and energy drinks. He owns shares of Qualcomm and is the author of The Qualcomm Equation. The Fool has a disclosure policy that gives stability to an otherwise chaotic world.